Your credit score is one of the main components of getting pre-approved for mortgage financing. There are many different loan programs and all have varying minimum credit score requirements and the higher your credit score the more options you have for loan programs that you will qualify for. The credit score can also affect the interest rate so with a higher credit score you could qualify for a lower interest rate.
It is important to review your credit reports to be sure that your accounts are being reported correctly and if there are errors in the reporting that you get the errors removed. There are things that you can be doing now to increase your credit rating such as monitoring your usage on your revolving credit accounts.
Did you know that if your balance owed is maxed out to the credit limit that it will drop your score?
If you are planning on purchasing a home you should review your credit with a mortgage professional to see what programs your credit will qualify for. Group One Mortgage is a licensed mortgage lender and we offer a no-cost consultation to see what loan programs you may qualify for.